Biotech Letter - John Thomas - Mad Hedge Fund Trader

A Biotechnology and Healthcare Trifecta Stock

A myriad of macroeconomic problems has thrown the stock market and the economy off balance.

Major US indices have been down since 2022, with some like the Nasdaq slipping by over 10% year-to-date due to volatile trading.

Meanwhile, there are businesses on a tear amid the issues.

One of them is AbbVie (ABBV), which gained more than 20% over the past six months.

This growth reinforced AbbVie’s reputation as a rock-solid investment that investors can rely on during uncertain periods.

Looking at its performance, AbbVie can be considered an investor’s trifecta primarily because of the benefits the company offers, namely, high yield, promising growth potential, and solid dividend growth.

AbbVie came off 2021 with 30% growth in its shares despite the global economic slowdown.

During that period, AbbVie reported a 13.4% year-over-year increase in its adjusted EPS at $3.31 and a 7.4% jump for its revenues at $14.9 billion.

This notable performance is mainly due to Humira’s sales, but this won’t be the case in the following years.

In 2018, AbbVie lost patent protection for Humira in Europe and is slated to lose exclusivity in the US by 2023.

For the longest time, AbbVie has depended mainly on Humira as its most vital source of revenue stream.

Nowadays, the company has been taking on a more diversified tactic instead of solely relying on the top-selling drug. The effects can be seen in its fourth-quarter report.

The company’s oncology sector grew by 4.6% to reach $1.9 billion. As for its neuroscience branch, it reported $1.7 billion in revenues or an impressive 19% climb from last year.

While AbbVie has been honing its diversification plans, the company still hasn’t forgotten where its true strength lies: immunology treatments.

Its immunology segment, where Humira is filed under, raked in $6.7 billion in revenues, showing a 13.2% increase compared to the same period.

To keep the momentum and preserve its spot as the leader in this segment, AbbVie introduced two successors to Humira: Skyrizi and Rinvoq.

In the same report, it can be seen that Humira still brought in the bulk of AbbVie’s immunology revenues at $5.33 billion, indicating a 3.5% increase in its previous revenues.

However, Skyrizi and Rinvoq also showed promising results.

Skyrizi sales carried on with its upward trajectory, as seen in the whopping 70.5% jump it recorded to contribute $895 million to the company.

As for Rinvoq, this treatment recorded an even higher jump at 84.4% to reach $517 million.

Throughout 2021, Skyrizi generated $2.94 billion while Rinvoq contributed $1.65 billion in sales. This indicated an 85% growth for Skyrizi and an over 100% year increase for Rinvoq.

Considering their performance, these two immunology successors to Humira are anticipated to move forward at a strong clip as AbbVie bags more FDA approvals for additional uses.

If things go as planned, Skyrizi and Rinvoq can quickly reach a combined revenue of $15 billion by 2025.

Outside its immunology sector, oncology treatment Imbruvica is projected to become another blockbuster.

To date, this drug ranks second to Humira in terms of sales, with roughly $5.41 billion in total in 2021.

Meanwhile, AbbVie has also been busy boosting its neurosciences division.

The company recently acquired Belgium-based Syndesi Therapeutics for approximately $1 billion.

Offering an upfront payment of $130 million, Syndesi granted AbbVie access to its portfolio of novel modulators of the synaptic vesicle protein 2A (SV2A). Among the products in development, the most prized treatment is Syndesi’s lead molecule SDI 118.

This mechanism is currently under Phase 1b trials for its potential use to treat cognitive impairment and other conditions linked to various neuropsychiatric and neurodegenerative diseases. These include Alzheimer’s disease and major depressive disorder.

Basically, SDI-118 targets a patient’s nerve terminals to boost synaptic efficiency.

This would complement the bigger company’s existing neuroscience efforts since AbbVie believes that synaptic dysfunction is an underlying problem when it comes to cognitive impairment associated with several disorders.

Launched in 2017, Syndesi is a biotechnology company backed by Novo Holdings, which owns controlling shares in global companies Novo Nordisk (NVO) and Novozymes (CPH).

Apart from its remarkable performance and growing pipeline, AbbVie’s stock dividend also serves as a strong pull for investors.

AbbVie stands at $1.41 per quarter or $5.64 per year.

Since its inception in 2013, the company has consistently increased its dividend annually.

In fact, AbbVie’s dividend yield of 3.87% remains a key attraction to investors despite the stock’s rising price.

No matter what metrics you use, AbbVie has managed to securely position itself at the top of the healthcare and biotechnology sector.

Over the course of the more than 9 years since AbbVie became a publicly-traded company, only Eli Lilly (LLY) has raked in higher total returns.

While the general market continues to bring uncertainty, AbbVie has been executing all the right moves to provide shareholders a haven to invest their hard-earned cash and earn a steady and rising return.

March 3, 2022

Biotech Letter

Mad Hedge Biotech and Healthcare Letter
March 3, 2022
Fiat Lux

Featured Trade:

CHEATING DEATH: ARE WE GETTING CLOSER TO IMMORTALITY?)
(AMZN), (FB), (GSK), (RHHBY), (GOOGL)

Cheating Death: Are We Getting Closer to Immortality?

Biotech Letter

“Staving off death is a thing that you have to work at…If living things don’t actively work to prevent it, they would eventually merge with their surroundings and cease to exist as autonomous beings. That is what happens when they die.”

This is a quote from Richard Dawkins, which Jeff Bezos wrote to Amazon (AMZN) shareholders in his farewell letter. Needless to say, death and decay seem to be at the forefront of his mind these days.

That’s why it comes as no surprise that the founder of Blue Origin and, of course, Amazon (as well as Elon Musk’s favorite punching bag) has launched a company comprising renowned scientists and globally respected executives to realize his dream of developing immortality technology.

The company, called Altos Labs, is basically an anti-aging venture. While many people would probably mock the idea, this seemingly impossible wild concept has notable names backing it.

Bezos is not the only investor putting his money on this project.

Russian billionaire Yuri Milner, whose wealth expanded thanks to his strategic funding of Facebook (FB), along with Russian email service Mail.ru (MLRYY) and Russian social networking site VK, is also part of the mission.

In fact, the company was officially conceived in Yuri’s house in Palo Alto in the Los Altos hills, leading to the name Altos Labs. (Given that “Los Altos” means “the heights” in Spanish, they probably used it as a double entendre for Altos Labs’ goals.)

In addition to Yuri and Bezos, there are several other backers of Altos Labs.

While they aren’t specifically named, the mere fact that the startup has generated the most funding of virtually any biotechnology business at $3 billion is quite telling of how much faith investors have on this project.

And they wouldn’t be wrong.

Its remarkable roster of executives includes experts from GlaxoSmithKline (GSK), Roche’s (RHHBY) Genentech, and the National Cancer Institute.

Altos Labs not only has wealthy backers and esteemed executives on its board, it also has Nobel Prize-winning scientists working on its goals.

The highest-profile scientist they have is Shinya Yamanaka, who received the Nobel Prize in 2012 for his stem cell research.

His work, which focuses on cell “reprogramming,” can reverse the development of cells towards that of stem cells. In a nutshell, Yamanaka is working on a “backward aging” technology.

Part of the board is Juan Carlos Izpisúa Belmonte, who specializes in developing techniques to switch cells from one type to another.

He gained notoriety when he experimented on creating hybridized human and monkey embryos using Yamanaka’s technology.

Another member of Altos’ board is Jennifer Doudna, who shared the 2015 Breakthrough Prize with Yamanaka and later won the 2020 Nobel Prize for her co-discovery of CRISPR genome editing.

Although it’s a startup, the company will have offices in the San Francisco Bay Area, San Diego, Cambridge in the UK, and even Japan.

However, Altos Labs insists that it’s not chasing some impossible vision worthy of sci-fi movies.

Admittedly, most of the details about the project are still under wraps. But insiders say that Bezos and his crew seek to become the “Bell Labs” of biology.

The oversimplified explanation of its goal is that Altos Labs plans to reverse diseases, effectively regenerating new cells to help the body perform optimally.

Basically, they seek to come up with a biological reprogramming technology that can rejuvenate the cells and eventually revitalize human beings.

They target cells under pressure, including those with genetic abnormalities, suffering from injuries, or aging.

Using their reprogramming technology, they aim to create medications that can deliver one-time treatments for these conditions. Ultimately, these efforts will lead to a prolonged human life.

Further clarifying their mission, Altos explained that their goal is to extend “health span” and that boosting any longevity initiative would simply be considered an “accidental consequence.”

Inasmuch as Alto Labs is an exciting venture, it isn’t the first in the field. This startup joins the ranks of Calico Labs, which was launched in 2013 and funded by one of Google’s (GOOGL) co-founders, Larry Page.

Other startups working on reprogramming technology are Life Biosciences, Turn Biotechnologies, AgeX Therapeutics, and Shift Bioscience.

The quest to defeat death is a mission as old as time.

In response to this challenge, Alto Labs has put together an impressively pedigreed bunch.

Moreover, a solid and established connection is seen between aging clocks and reprogramming technology—all of which Alto Labs already have access to due to its roster of executives and scientists.

While the technology feels so farfetched, industry experts believe it holds indisputable and repeatable results.

These were already seen in laboratory experiments. However, these have only succeeded so far when applied to individual cells.

The technology can gather a cell from an 80-year-old and, via in vitro, reverse this age by as much as 40 years.

If this succeeds, Altos is poised to lead and dominate the “immortality” industry — a sector projected to be worth $600 billion by 2025 — soon.

March 1, 2022

Biotech Letter

Mad Hedge Biotech and Healthcare Letter
March 1, 2022
Fiat Lux

Featured Trade:

(THE FUTURE OF SURGERY)
(ISRG), (MDT), (SYK), (ZBH), (JNJ)

The Future of Surgery

Biotech Letter

The healthcare sector is one of the biggest and most intricate industries in the stock market.

It’s a multi-trillion dollar area that offers investors with virtually unlimited opportunities to build a life of financial freedom via sound long-term investing.

This industry has several quality stocks—businesses that offer to cure diseases, develop revolutionary medical devices and treatments, or even just to offer personal care items you purchase from drugstores.

One of the most lucrative sectors of the field is surgery.

Surgery dates back centuries and is one of the oldest practices in the field of healthcare and medicine. Thankfully, its technology has evolved since then.

The surgical robotics market is projected to expand exponentially, and ISRG is in a prime spot to reap the rewards from this impending growth.

So far, approximately 15% of surgeries are already conducted via robots, showing a massive room for expansion as the technology gains traction among the medical experts and patients.

Robotic assistants are gradually entering the mainstream market, opening another revenue stream. Overall, the anticipated market for this field is calculated to rise at a range somewhere from 9.5% to 19.3% from 2022 to 2032.

The growth won’t likely stop there considering the myriad of benefits that robotically assisted surgeries offer compared to traditional surgeries, such as shorter recovery periods and alleviated discomfort among patients.

These advantages make these systems attractive to healthcare providers, especially considering the way the technology optimizes the recovery process of their patients and delivers more precise and safe surgical results.

Today, one of the emerging leaders in this sector of the healthcare community is Intuitive Surgical (ISRG).

Basically, ISRG is a company that focuses on medical devices, specifically on minimally invasive robotic systems that perform surgeries. Its flagship platform is called the “Da Vinci” system.

To date, it has installed roughly 6,700, with revenue climbing by 12% annually over the past decade.

Since the launch of the da Vinci platform, ISRG has expanded at quite a rapid pace. Its revenue climbed from $1.8 billion in 2011 to $5.7 billion in 2021.

In terms of expanding its services, ISRG recently announced a new platform called Ion. This is a lung biopsy robot, which is projected to become yet another remarkable revenue stream for the company.

The more da Vinci units ISRG ships out, the stronger its competitive edge becomes.

Aside from raking in profits from their surgical robotic units, which typically cost roughly $500,000 to $2.5 million depending on the complexity of the machine, the da Vinci units require a considerable time investment to master its operation.

This leads to high switching expenses, which all but guarantees retained and returning clients for ISRG’s business.

To put this into context, system revenue for ISRG was recorded at $1.7 billion in 2021. This indicates that about 70% of its $5.7 billion total revenue came from recurring products and services.

Thus far, ISRG has been the dominant leader in this cutting-edge space in healthcare and has shown incredible growth since its IPO. More importantly, the company has an impressive cash flow and cash balance.

Moreover, ISRG is an industry leader. As with every company in this position, ISRG has captured the lion’s share of the market.

At this point, the company currently controls 80% of the market and is expected to increase this dominance as it continues to make headway.

Considering the massive potential of this market, it comes as no surprise that more and more companies are working to topple ISRG.

Other companies have already started introducing their own specialized robots.

Medtronic (MDT) launched a spine and brain robot, Stryker (SYK) created one for knee and hip replacement, and Zimmer Biomet (ZBH) introduced a competitor in the spine and knee procedures space. Even Johnson & Johnson (JNJ) entered the fray with its lung biopsy robot.

Overall, ISRG is a brilliant company.

It possesses technological superiority over its rivals and a virtual monopoly of a rapidly growing market. These factors make ISRG an excellent long-term healthcare stock to buy and forget.

Global Health Tech Pioneer Soaring Under the Radar

Biotech Letter

The COVID-19 pandemic has shed light on innumerable flaws in the way several industries function, ranging from the healthcare system to the global supply chain.

At the same time, this phenomenon granted a rare chance for several innovative businesses to offer solutions to these flaws.

Although COVID-19 is a healthcare issue, the secondary effects like economic and financial instability it caused aggravated the situation.

Worldwide poverty worsened in 2020—something that has not happened in 20 years—forcing roughly 100 million individuals below the poverty line.

The absence of much-needed essential healthcare products and services in several areas across the globe resulted in restricted capacity to respond to the pandemic and its effects.

While the situation was definitely heightened in developing nations, even countries like the United States struggled with the situation, with 1 in 4 adults suffering from 2 or more chronic health conditions.

Moreover, the country’s national healthcare expenditure rose 9.7% to reach $4.7 trillion in 2020, accounting for 19.7% of the GDP. That’s roughly $12,530 per person.

That’s why it comes as no surprise that even the most developed areas of the globe are scrambling to find answers to the debilitating cost of healthcare.

A total of $44 billion was raised in 2021 solely for healthcare innovation initiatives. This represents a jaw-dropping increase from the $22 billion raised in 2020.

Notably, 2021 also saw a 50% rise in health tech companies' acquisitions, and these numbers are anticipated to climb in 2022 and beyond.

By 2028, the US national healthcare expenditure is projected to hit $6.2 trillion, primarily due to the steady increase in spending on healthcare technology.

While the rise in expenditure would undoubtedly lead to improved healthcare quality, the increase tends to be misleading because it implies an increase in cost as well.

That can’t be any further from the truth.

Aside from offering life-saving solutions, the introduction of more advanced technology like AI in healthcare actually saves money. In fact, the estimated savings rate annually by 2026 is at $150 billion.

Given that AI technology alone is anticipated to save roughly 22,000 people each year starting 2033, the most logical move is for the healthcare industry to keep investing in this kind of technology and other life-saving solutions.

One critical player in this transition period is Iqvia Holdings (IQV).

This company, which was featured in Fortune’s “World’s Most Admired Companies” in 2022 and the No. 1 in “Healthcare: Pharmacy and Other Services, focuses on leveraging data science to provide life-saving solutions.

It was formed in 2016 following the merger of Quintiles and IMS and has since then transformed into the leader in health information technology in the world.

The company aims to elevate research and innovation through offering business intelligence to the healthcare industry and offering its assistance in clinical studies.

While Iqvia did not become a household name like Moderna (MRNA), Pfizer (PFE), and BioNTech (BNTX), this health tech company gained popularity during the COVID-19 pandemic.

Iqvia was able to provide the necessary insights that organizations needed to manage the effects of the pandemic. The company's analysis proved to be vital in coordinating efforts, predicting future situations, and determining unforeseen problems.

The capacity to share their valuable data anywhere in the world drastically reduced the time wasted on coordinating and boosted efficiency.

Basically, Iqvia has three primary segments: Technology and Analytics Solutions, R&D segment, and Contract Sales and Medical Solutions.

Despite the challenges of the pandemic and its effects, Iqvia’s three segments still managed to grow.

The revenue of Technology and Analytics Solutions climbed by 10%, reaching a total of $1.34 billion.

Meanwhile, its R&D division raked in $1.85 billion, showing off a 32.4% rise from the same period in 2020. While this is an impressive growth, the company aims to continue expanding, with an additional $6.9 billion worth of backlog in its R&D in 2022.

Finally, the revenue of its Contract Sales and Medical Solutions sector reached $201 million, with more and more services expected to enter the market.

However, one of the most promising stats from Iqvia is its recent buyback in September 2021. The company repurchased shares worth $202 million using its accumulated cash, of which $125 million was generated in the third quarter alone.

Following this move, the company still has $697 million left in share repurchase authorization. This recent buyback follows an Iqvia tradition, which dates back to 2018—a tradition that definitely inspires confidence in the long-term outlook of the company.

Other than these three core businesses, Iqvia has revealed the addition of a Research Nursing and Phlebotomy services unit.

The emergence of these mobile units would ensure that the company becomes more accessible and can offer more affordable services.

Another new segment is its Grants and Funding Management platform, which offers solutions to other companies in the life sciences.

Iqvia is a pioneering name in the healthcare industry, and this company is among the handful of names that look extremely promising.

Looking at its trajectory, Iqvia has proven its rightful place in this emerging market by delivering highly critical improvements and essential insights.

Considering all these, Iqvia is no doubt a rock-solid bet.

iqvia

February 22, 2022

Biotech Letter

Mad Hedge Biotech and Healthcare Letter
February 22, 2022
Fiat Lux

Featured Trade:

(AN ATTRACTIVELY VALUED BIOTECH ON THE VERGE OF BREAKTHROUGHS)
(VRTX), (IBB), (ABBV), (CRSP)

An Attractively Valued Biotech on the Verge of Breakthroughs

Biotech Letter

Some stocks bring quick and easy gains, and those are thrilling. However, a key strategy behind a successful portfolio is always including solid players that deliver excellent returns in the long run.

One of the things I appreciate about investing in the healthcare sector is that this industry is primed to perform well no matter what happens to the market.

After all, people will continue to depend on their products and services regardless of the situation in the financial and economic world.

In the biotechnology and healthcare sector, an excellent way to ensure this is to evaluate a company’s pipeline.

This serves as a good indicator of whether the business has the capacity and potential to generate revenue in the years to come. It’s also advisable to check out a company’s general financial picture and, of course, its strategy. Those elements play critical roles in tomorrow’s performance.

With these criteria in mind, one of the biotechnology names that stand out in the field is Vertex Pharmaceuticals (VRTX).

With a market capitalization of $58.45 billion, Vertex is considered one of the biggest biotechnology companies in the world.

To date, it is included in the Top 5 list of iShares Nasdaq Biotechnology ETF (IBB). Over the years, the company has primarily concentrated on the cystic fibrosis (CF) field.

With its leading CF treatment, Trikafta, gaining approval for a triple combination back in 2019, Vertex has cornered practically 90% of the market.

Unfortunately, Vertex’s share price has remained relatively unchanged for the past two years.

This stagnant performance could be attributed to the disappointing Phase 2 results of its rare liver disease treatment VX-814 in October 2020 and respiratory medication VX-864 in June 2021.

Due to the setbacks from these studies, investors have started to question Vertex’s ability to come up with a marketable treatment outside its CF portfolio.

Vertex posted revenue increases in its recent reports despite these disappointing results.

In the fourth quarter of 2021, the company reported $2.073 billion in revenues, indicating a 27% increase year-over-year, along with an impressive 31% profit growth.

As expected, the revenue boost was courtesy of Trikafta, which recorded a 55% increase in its annual sales.

For the entire 2021 fiscal year, Vertex raked in $7.57 billion in revenues and $3.38 billion in profits, showing off a notable 45% net margin.

Prior to this report, Vertex’s initial guidance for its 2021 revenues was at $6.8 billion.

At that time, experts already believed that the company might be overestimating its capacity, especially considering the setbacks of the trials.

However, it managed to exceed expectations.

Surprisingly, Vertex disclosed an even higher fiscal outlook for 2022 at $8.5 billion. Considering that the company tends to be conservative in its estimates, the following months would definitely bring exciting breakthroughs for Vertex.

In fact, if we look at its track record, there’s a very good chance that the $8.5 billion annual revenue estimate would reach $8.8 billion or even hit $9 billion by the end of 2022.

In terms of its pipeline, Vertex has been working on strengthening its hold in the CF market. This becomes even more necessary with AbbVie (ABBV) hot on its heels with its own version of a triple combination CF therapy expected to rival Trikafta.

Outside its CF program, there are roughly 10 assets queued in various stages of clinical trials.

So far, the most advanced is its mRNA-based cell therapy collaboration with CRISPR Therapeutics (CRSP). The treatment, called CTX001, is being developed to target sickle cell disease and beta-thalassemia.

To date, CTX001 is already in Phase 3. It’s slated for regulatory submission to the FDA sometime in the third or fourth quarter of 2022. In terms of profits, CTX001’s peak sales is projected at $1.3 billion.

Another promising candidate is kidney disease treatment VX-147, which is in Phase 2.

Two more candidates are in Phase 2, diabetes cell therapy VX-880 and potential opioid substitute VX-548. While additional trials are still needed, both are anticipated to become blockbuster treatments and game-changers when they enter the market.

Looking at Vertex’s pipeline and the progress of its candidates, it’s safe to say that the company has the capacity to come up with blockbusters outside its CF program.

Moreover, Vertex has an outstanding investment ability due to its high cash balance worth more than $7.5 billion and an impressive balance sheet.

This means that Vertex has the capability to participate in a significant acquisition in the following years in an effort to bolster its pipeline. In this vein, an obvious and alluring candidate would be CRISPR Therapeutics, which is currently valued at $4.49 billion.

Overall, Vertex is a remarkable biotechnology company that has specialized in a lucrative niche for several years, equipping it with the ability to successfully monopolize the sector.

Although market volatility has recently affected it, Vertex still managed to report revenue growth and promising data from its trials. With its relative financial strength and excellent pipeline, I believe this makes the stock a good investment in the long term.

February 17, 2022

Biotech Letter

Mad Hedge Biotech and Healthcare Letter
February 17, 2022
Fiat Lux

Featured Trade:

(IS THIS THE SOLUTION TO ANTI-VAXXERS?)
(NVAX), (MRNA), (PFE), (BNTX), (SNY)

Is This The Solution To The Anti-Vaxxers?

Biotech Letter

One of my old friends, a 45-year-old teacher, has long held the belief that getting vaccinated against COVID-19 is a terrible idea.

Despite the growing number of people getting jabbed, he still felt uneasy over the new mRNA technology applied in the two most widely used shots, Moderna (MRNA) and Pfizer (PFE) / BioNTech (BNTX).

His anxiety worsened when his neighbor was sent to the hospital following his second shot, especially after the doctors said that the official cause of the heart muscle inflammation was the vaccine.

No amount of convincing could change his mind regardless of how many times I explained that the condition was a rare and relatively mild side effect.

However, things seemed to have changed when he heard about the Novavax (NVAX) vaccine, Nuxavoxid.

Since Nuxavoxid uses a decades-long pre-existing protein-based platform instead of a novel approach, more and more people like my friend are starting to take interest and considering signing up for the vaccine.

Actually, this reaction can be observed not only in the US but also across the globe. Data suggest that previously wary individuals now feel more confident over a more established technology.

Novavax’s vaccine uses a recombinant protein technology, which has been around since the mid-1980s.

In fact, this has become the go-to or standard platform used in developing vaccines against Hepatitis B, cervical cancer, and even meningitis.

What does this mean for Novavax?

Considering that over half of the global population has already been inoculated, it’s safe to say that Novavax is late to the party.

However, recent reports showed that a fourth vaccine does not show any significant antibody increase. This isn’t particularly promising especially in light of the Omicron variant.

Moreover, the EMA warned that "repeat boosters every four months might actually weaken people's immune systems. Boosters can be done once, or maybe twice, but it's not something that we can think should be repeated constantly.”

This can be good news for the newcomer Novavax.

Since Novavax uses a recombinant nanoparticle technology, this approach might be considered more effective as a booster shot instead of using the same mRNA technology for a fourth jab.

So far, this is presumed as one of the major reasons for Israel’s—one of the leading countries in vaccine administration—decision to place an order for an alternative COVID-19 vaccine last January.

Instead of reordering from Pfizer or Moderna, Israel opted to get 5 million doses, with an option to add 5 million more, of Novavax vaccine to serve as the fourth booster for its population.

Given that Israel is ordering for its 9.4 million citizens, this deal would serve as an excellent source of real-life data for Novavax’s candidate and whether it can become the go-to choice for booster shots across the globe.

Before this development, Novavax’s projected 2022 revenue was at $4.94 billion. However, the recent regulatory approvals from various nations and advanced orders have the company adjusting this projection.

Needless to say, the possibility of Nuxavoxid practically monopolizing the booster shot market has dramatically bolstered expectations.

On top of these, Novavax has been simultaneously working on a flu vaccine, Nanoflu, that can rival Sanofi’s (SNY) FluZone.

Given that the market size for influenza is expected to grow from $6.5 billion in 2022 to $10.73 billion by 2028, and the fact that Nanoflu easily outperformed the leading product by 40% in clinical trials, it’s safe to say that this is yet another promising revenue stream for Novavax.

Overall, I think Novavax is a good long-term play. It’s important to remember, though, that Novavax’s profile is very close to Moderna and BioNTech.

That means investors interested in this stock must have boundless patience and a strong stomach for the volatility in the following months.

Looking at its excellent potential, it’s clear that the stock is undervalued. Hence, it would be wise for interested investors to buy the dip.